The invention relates to the technical field of spinning, in particular to an organic cotton and wool blended knitted fabric and a making method thereof. The organic cotton and wool blended knitted fabric adopts organic cotton fiber and a wool fiber as spinning raw materials, and the blending quality ratio is that the organic cotton fiber is 70%, and the wool fiber is 30%; the organic cotton fiberof which the main body fiber length is about 31 mm is selected, spinning is conducted through a complete condensing technology, and the spun yarn twist factor is 390-410; the fabric adopts combined rib stitches, the course is 78/10 cm, and the wale is 40.9/10 cm. The fabric has the advantages that the developed fabric has the good comfortability, the soft hand feeling of cotton is achieved, and meanwhile the softness, fleeciness and bright color and luster of wool are achieved, and the fabric is not prone to pilling and corrugation.